Looking at the Numbers

So far, we have looked at home-buying issues, strategies, and programs for people with low income or disabilities. Here, we’ll look at some numbers in a couple of real-life situations where people with disabilities bought their first homes.

Keep these important points in mind as we look at these numbers:

1. Programs and options change all the time and vary by location. Check with your local lender and realtor about what options are available.
2. These examples use numbers that were realistic in early 2012. Readers should not expect that interest rates and terms will be the same in future months and years. For example, interest rates on mortgages could rise in future years and that would raise loan payments.
3. For a calculator that can help you estimate how much a monthly mortgage payment would be for different loan amounts and interest rates, visit Bankrate.com.

Tom’s first Home: Buying a House with an FHA Loan

Tom gets a Federal Housing Administration (FHA) loan. He gets a 3% grant to help with the loan’s 3.5% down payment requirement.

Funding Tom’s down payment

Tom’s purchase price	$100,000
Required down payment %	3.5%
Total required down payment	$3,500
Down-payment assistance grant	$3,000
Tom’s own money	$500
Tom’s loan amount	$96,500

Tom’s monthly payments

Mortgage ($96,500 loan at 4.5% Interest)	$489
Property taxes (estimated at 1.5% of the purchase price)	$125
Hazard (fire) insurance (estimated at $800 per year)	$67
Mortgage insurance premium (Necessary because Tom’s down payment is less than 20% of the purchase price)	$87
Tom’s total monthly payments	$768

Anita’s New Home: Buying a House with a Conventional Loan and a Down-Payment Assistance Program

Anita gets a regular nongovernment insured loan and help from a local city program to pay the down payment. Anita won’t have to repay the down payment assistance until she sells her house or has completed repaying her mortgage, whichever happens first.

Funding Anita’s down payment

Anita’s purchase price	$100,000
Required down payment %	42%
Total required down payment	$42,000
City down-payment assistance	$30,000
Gift from Anita’s family	$10,000
Anita’s own money	$2,000
Anita’s loan amount	$58,000

Anita’s monthly payments

Mortgage ($58,000 loan at 4.5% Interest)	$294
Property taxes (estimated at 1.5% of the purchase price)	$125
Hazard (fire) insurance (estimated at $800 per year)	$67
Anita’s total monthly payments	$486

Both Tom and Anita found homes that they could afford! Talk to a realtor to see if you can too!